Whitehaven Coal has revised its mine plan for Narrabri to enable earlier access to Southern zone which UBS expects will improve costs and productivity. The stage 3 expansion at Narrabri mine is expected to involve costs of $400m.
The company also indicated operations at Maules Creek mine are more consistent after issues like labour shortages, dust, fire and drought peaked in the December half of FY19.
UBS reiterates its Buy rating with the target price rising to $2.15 from $2.10.
Sector: Energy.
Target price is $2.15.Current Price is $1.59. Difference: $0.56 – (brackets indicate current price is over target). If WHC meets the UBS target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
